For the third quarter of 2015, El Paso Electric Company ("EE" or the
"Company") reported net income of $56.7 million, or $1.40 basic and
diluted earnings per share. In the third quarter of 2014, EE reported
net income of $52.5 million, or $1.30 basic and diluted earnings per
share.

For the nine months ended September 30, 2015, EE reported net income
of $81.3 million, or $2.01 basic and diluted earnings per share. Net
income for the nine months ended September 30, 2014 was $87.2 million,
or $2.16 basic and diluted earnings per share.

"Our third quarter results are primarily the result of the hotter than
normal summer weather our service territory experienced during the
quarter ended September 30, 2015," said Tom Shockley, Chief Executive
Officer. "Our retail kWh sales grew 7.0% over the third quarter of 2014,
which set a record for kWh consumption for our service territory during
any calendar quarter. Further, we reached a new native system peak of
1,794 megawatts in August 2015. Although these accomplishments were
largely the result of hotter weather conditions, they illustrate that we
operate in a vibrant and growing community and we look forward to
continuing to meet the region's expanding energy needs with clean and
reliable technology."

Earnings Summary

The table and explanations below present the major factors affecting
2015 net income relative to 2014 net income:

Quarter Ended

Nine Months Ended

After-

After-

Tax

Tax

Pre-Tax

Net

Basic

Pre-Tax

Net

Basic

Effect

Income

EPS

Effect

Income

EPS

September 30, 2014

$

52,476

$

1.30

$

87,187

$

2.16

Changes in:

Retail non-fuel base revenues

$

14,050

9,133

0.23

$

12,869

8,365

0.21

Investment and interest income

3,539

2,825

0.07

4,027

3,232

0.08

Allowance for funds used during construction

(2,811

)

(2,518

)

(0.06

)

(2,274

)

(2,107

)

(0.05

)

Interest on long-term debt

(1,848

)

(1,202

)

(0.03

)

(5,640

)

(3,667

)

(0.09

)

Depreciation and amortization

(1,695

)

(1,102

)

(0.03

)

(4,744

)

(3,084

)

(0.08

)

Palo Verde operations and maintenance

(1,527

)

(992

)

(0.03

)

339

221

0.01

Deregulated Palo Verde Unit 3

(1,409

)

(915

)

(0.02

)

(4,362

)

(2,835

)

(0.07

)

Transmission and distribution O&M

(548

)

(356

)

(0.01

)

(2,820

)

(1,832

)

(0.05

)

O&M at fossil-fuel generating plants

(26

)

(17

)

—

(4,305

)

(2,799

)

(0.07

)

Palo Verde performance rewards, net

—

—

—

(2,143

)

(1,415

)

(0.04

)

Other

(592

)

(0.02

)

4

—

September 30, 2015

$

56,740

$

1.40

$

81,270

$

2.01

Regulatory Lag

The completion of Montana Power Station ("MPS") Units 1 & 2 (including
common plant, transmission lines and substation) and the Eastside
Operations Center ("EOC") are having a negative impact on the Company's
2015 financial results relative to 2014 due to regulatory lag associated
with the placement in service of these assets without a corresponding
increase in revenues. The primary impact from these assets being placed
in service include a reduction in amounts capitalized for allowance for
funds used during construction ("AFUDC"), and increases in depreciation,
operations and maintenance expense, property taxes and interest cost.

Third Quarter 2015

Income for the quarter ended September 30, 2015, when compared to the
same period last year, was positively affected by:

Increased retail non-fuel base revenues, primarily due to increased
revenues largely resulting from hotter weather experienced in the
third quarter of 2015. Most of this increase was generated from our
residential and small commercial and industrial customers. KWh sales
to residential and small commercial and industrial customers increased
11.9% and 3.4%, respectively, reflecting a 22.4% increase in cooling
degree days for the third quarter compared to the same period in 2014.
Retail non-fuel base revenues increased $1.4 million from our large
commercial and industrial customers and $1.3 million from sales to
public authorities, compared to the same period in 2014.

Increased investment and interest income due to further
diversification of the Company’s Palo Verde decommissioning trust fund
equity portfolio.

Income for the quarter ended September 30, 2015, when compared to the
same period last year, was negatively affected by:

Decreased AFUDC due to lower balances of construction work in progress
(“CWIP”), primarily due to MPS Units 1 & 2 and the EOC being placed in
service during the first quarter of 2015 and a reduction in the AFUDC
accrual rate.

Increased interest on long-term debt due to the interest accrued on
the $150 million senior notes issued in December 2014.

Increased depreciation and amortization related to an increase in
depreciable plant, primarily due to MPS Units 1 & 2 and the EOC being
placed in service during the first quarter of 2015.

Increased Palo Verde operations and maintenance expense.

Decreased deregulated Palo Verde Unit 3 revenues, primarily due to a
20.3% decrease in proxy market prices reflecting a decline in the
price of natural gas.

Increased transmission and distribution operation and maintenance
expense primarily due to system support and improvements and
preventive maintenance.

Increased operations and maintenance expense related to our
fossil-fuel generating plants, primarily due to operations and
maintenance expense at MPS in 2015, with no comparable expense during
the same period last year and an increased level of maintenance
activity at the Four Corners plant. These increases were largely
offset by decreased maintenance expense at the Rio Grande plant.

Year to Date

Income for the nine months ended September 30, 2015, when compared to
the same period last year, was positively affected by:

Increased retail non-fuel base revenues, primarily due to (i)
increased revenues of $10.4 million from our residential customers due
to hotter weather in the third quarter of 2015 contributing to a 5.6%
increase in kWh sales; (ii) increased revenues of $1.9 million from
small commercial and industrial customers due to a 1.5% increase in
kWh sales resulting from hotter weather and a 1.8% increase in the
average number of customers; and (iii) a $1.2 million increase from
large commercial and industrial customers. These increases were
partially offset by a $0.7 million decrease from sales to public
authorities due to a military installation moving a portion of their
load to an interruptible rate.

Increased investment and interest income due to further
diversification of the Company’s Palo Verde decommissioning trust fund
equity portfolio.

Income for the nine months ended September 30, 2015, when compared to
the same period last year, was negatively affected by:

Increased interest on long-term debt due to the interest accrued on
the $150 million senior notes issued in December 2014.

Increased depreciation and amortization related to an increase in
depreciable plant, primarily due to MPS Units 1 & 2 and the EOC being
placed in service during the first quarter of 2015.

Decreased deregulated Palo Verde Unit 3 revenues, primarily due to a
24.6% decrease in proxy market prices, reflecting a decline in the
price of natural gas and a 12.5% decrease in generation due primarily
to a Unit 3 planned spring refueling outage that was completed in May
2015 with no comparable outage in 2014.

Increased operations and maintenance expense related to our
fossil-fuel generating plants, primarily due to operations and
maintenance expense at MPS in 2015, with no comparable expense during
the same period last year and an increased level of maintenance
activity at the Newman and Four Corners plants. These increases were
partially offset by decreased maintenance expense at the Rio Grande
plant.

Increased transmission and distribution operations and maintenance
expense primarily due to (i) increased preventive maintenance; (ii)
system support and improvements; and (iii) environmental expense.

Decreased amounts of AFUDC capitalized due to lower balances of
construction work in process primarily due to MPS Units 1 & 2 and the
EOC being placed in service during the first quarter of 2015 and a
reduction in the AFUDC accrual rate.

Recognition of Palo Verde performance rewards associated with the 2009
to 2012 performance periods, net of disallowed fuel and purchased
power costs related to the resolution of the Texas fuel reconciliation
proceeding designated as PUCT Docket No. 41852 recorded in June 2014
with no comparable amount in the current period.

Retail Non-fuel Base Revenues

Retail non-fuel base revenues increased $14.1 million, pre-tax, or 7.7%
in the third quarter of 2015, compared to the same period in 2014. This
increase includes a $9.5 million increase in revenues from residential
customers and a $1.8 million increase in revenues from our small
commercial and industrial customers reflecting hotter summer weather in
the third quarter of 2015 when compared to 2014. Retail non-fuel base
revenues from large commercial and industrial customers increased $1.4
million. Retail non-fuel revenues from sales to public authorities
increased $1.3 million reflecting an 8.2% increase in kWh sales. Cooling
degree days increased 22.4% for the third quarter of 2015, compared to
the same quarter last year, and were 15.9% above the 10-year average.
Non-fuel base revenues and kWh sales are provided by customer class on
page 11 of this release.

For the nine months ended September 30, 2015, retail non-fuel base
revenues increased $12.9 million, or 2.9% compared to the same period in
2014. This increase includes a $10.4 million increase in revenues from
residential customers and a $1.9 million increase in revenues from small
commercial and industrial customers reflecting hotter summer weather and
an increase of 1.3% and 1.8%, respectively, in the average number of
customers. KWh sales to public authorities increased 1.6% while revenue
declined by $0.7 million due to a military installation moving a portion
of their load to an interruptible rate. Retail non-fuel revenues from
large commercial and industrial customers increased $1.2 million.
Cooling degree days increased 6.3% in 2015, when compared to the same
period last year, and were 4.7% over the 10-year average. Heating degree
days increased 15.7% for the nine months of 2015, compared to the same
period last year, and were 3.3% below the 10-year average. Non-fuel base
revenues and kWh sales are provided by customer class on page 13 of this
release.

Capital and Liquidity

We continue to maintain a strong capital structure in which common stock
equity represented 44.9% of our capitalization (common stock equity,
long-term debt, current maturities of long-term debt, and short-term
borrowings under the revolving credit facility). At September 30, 2015,
we had a balance of $12.6 million in cash and cash equivalents. Based on
current projections, we believe that we will have adequate liquidity
through our current cash balances, cash from operations, and available
borrowings under our Revolving Credit Facility ("RCF") to meet all of
our anticipated cash requirements for the next 12 months. We may also
issue long-term debt in the capital markets in early 2016 to finance
capital requirements and reduce amounts outstanding on our RCF. At
September 30, 2015, $85.0 million was outstanding under the RCF for
working capital and general corporate purposes.

Cash flows from operations for the nine months ended September 30, 2015
were $176.4 million, compared to $174.6 million in the corresponding
period in 2014. A component of cash flows from operations is the change
in net over-collection and under-collection of fuel revenues. The
difference between fuel revenues collected and fuel expense incurred is
deferred to be either refunded (over-recoveries) or surcharged
(under-recoveries) to customers in the future. During the nine months
ended September 30, 2015, the Company had a fuel over-recovery of $10.9
million compared to an under-recovery of fuel costs of $1.2 million
during the nine months ended September 30, 2014. At September 30, 2015,
we had a net fuel over-recovery balance of $1.6 million, including an
under-recovery of $2.4 million in Texas, and an over-recovery of $4.0
million in the New Mexico and FERC jurisdictions. On April 15, 2015, we
filed a request to lower our Texas fixed fuel factor by approximately
24% to reflect a change in fuel costs primarily related to a reduction
in natural gas prices. This decrease was effective with May 2015
billings.

During the nine months ended September 30, 2015, our primary capital
requirements were for the construction and purchase of electric utility
plant, payment of common stock dividends, and purchases of nuclear fuel.
Capital requirements for new electric utility plant were $211.5 million
for the nine months ended September 30, 2015 and $189.3 million for the
nine months ended September 30, 2014. Capital expenditures for 2015 are
expected to be $278.7 million. Capital requirements for purchases of
nuclear fuel were $30.5 million for the nine months ended September 30,
2015, and $28.8 million for the nine months ended September 30, 2014.

On September 30, 2015, we paid a quarterly cash dividend of $0.295 per
share, or $11.9 million, to shareholders of record as of September 16,
2015. We paid a total of $35.1 million in cash dividends during the nine
months ended September 30, 2015. At the current dividend rate, we expect
to pay cash dividends of approximately $47.1 million during 2015.

No shares of common stock were repurchased during the nine months ended
September 30, 2015. As of September 30, 2015, a total of 393,816 shares
remain available for repurchase under the currently authorized stock
repurchase program. The Company may repurchase shares in the open market
from time to time.

We maintain the RCF for working capital and general corporate purposes
and financing of nuclear fuel through the Rio Grande Resources Trust
(the "RGRT"). The RGRT, the trust through which we finance our portion
of nuclear fuel for Palo Verde, is consolidated in the Company's
financial statements. The RCF has a term ending January 14, 2019. The
aggregate unsecured borrowing available under the RCF is $300 million.
We may increase the RCF by up to $100 million (up to a total of $400
million) during the term of the agreement, upon the satisfaction of
certain conditions, more fully set forth in the agreement, including
obtaining commitments from lenders or third party financial
institutions. In August 2015, the RGRT $15.0 million Series A 3.67%
Senior Notes matured and were paid utilizing funds borrowed from the
RCF. The total amount borrowed for nuclear fuel by the RGRT was $128.7
million at September 30, 2015, of which $33.7 million had been borrowed
under the RCF, and $95.0 million was borrowed through senior notes.
Borrowings by the RGRT for nuclear fuel were $127.5 million as of
September 30, 2014, of which $17.5 million had been borrowed under the
RCF and $110.0 million was borrowed through senior notes. Interest costs
on borrowings to finance nuclear fuel are accumulated by the RGRT and
charged to us as fuel is consumed and recovered through fuel recovery
charges. At September 30, 2015, $85.0 million was outstanding under the
RCF for working capital and general corporate purposes. At September 30,
2014, $72.0 million was outstanding under the RCF for working capital
and general corporate purposes.

We received approval from the New Mexico Public Regulation Commission on
October 7, 2015, and from the Federal Energy Regulatory Commission
("FERC") on October 19, 2015, to issue up to $310 million in new
long-term debt and to guarantee the issuance of up to $65 million of new
debt by the RGRT to finance future purchases of nuclear fuel and to
refinance existing nuclear fuel debt obligations. We also requested
approval from the FERC to continue to utilize our existing RCF without
change from the Commission’s previously approved authorization. The FERC
authorization is effective from November 15, 2015 through November 15,
2017. The approvals granted in these cases supersede prior approvals.

2015 Earnings Guidance

We are adjusting and narrowing our earnings guidance for 2015 to a range
of $1.95 to $2.10 per basic share from the previous range of $1.75 to
$2.05.

Conference Call

A conference call to discuss third quarter 2015 financial results is
scheduled for 10:30 A.M. Eastern Time, on November 4, 2015. The dial-in
number is 888-461-2024 with a conference ID number of 4633829. The
international dial-in number is 719-325-2361. The conference leader will
be Lisa Budtke, Assistant Treasurer. A replay will run through November
18, 2015 with a dial-in number of 888-203-1112 and a conference ID
number of 4633829. The replay international dial-in number is
719-457-0820. The conference call and presentation slides will be
webcast live on the Company's website found at http://www.epelectric.com.
A replay of the webcast will be available shortly after the call.

Safe Harbor

This news release includes statements that may constitute
forward-looking statements made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. This
information may involve risks and uncertainties that could cause actual
results to differ materially from such forward-looking statements.
Factors that could cause or contribute to such differences include, but
are not limited to: (i) increased prices for fuel and purchased power
and the possibility that regulators may not permit EE to pass through
all such increased costs to customers or to recover previously incurred
fuel costs in rates; (ii) full and timely recovery of capital
investments and operating costs through rates in Texas and New Mexico;
(iii) uncertainties and instability in the general economy and the
resulting impact on EE's sales and profitability; (iv) changes in
customers' demand for electricity as a result of energy efficiency
initiatives and emerging competing services and technologies; (v)
unanticipated increased costs associated with scheduled and unscheduled
outages of generating plant; (vi) the size of our construction program
and our ability to complete construction on budget; (vii) potential
delays in our construction schedule due to legal challenges or other
reasons; (viii) costs at Palo Verde; (ix) deregulation and competition
in the electric utility industry; (x) possible increased costs of
compliance with environmental or other laws, regulations and policies;
(xi) possible income tax and interest payments as a result of audit
adjustments proposed by the IRS or state taxing authorities;
(xii) uncertainties and instability in the financial markets and the
resulting impact on EE's ability to access the capital and credit
markets; (xiii) possible physical or cyber attacks, intrusions or other
catastrophic events; and (xiv) other factors detailed by EE in its
public filings with the Securities and Exchange Commission. EE's filings
are available from the Securities and Exchange Commission or may be
obtained through EE's website, http://www.epelectric.com.
Any such forward-looking statement is qualified by reference to these
risks and factors. EE cautions that these risks and factors are not
exclusive. EE does not undertake to update any forward-looking statement
that may be made from time to time by or on behalf of EE except as
required by law.

El Paso Electric Company

Statements of Operations

Quarter Ended September 30, 2015 and 2014

(In thousands except for per share data)

(Unaudited)

2015

2014

Variance

Operating revenues, net of energy expenses:

Base revenues

$

197,620

$

183,405

$

14,215

(a)

Deregulated Palo Verde Unit 3 revenues

2,535

3,944

(1,409

)

Other

9,240

7,702

1,538

Operating Revenues Net of Energy Expenses

209,395

195,051

14,344

Other operating expenses:

Other operations and maintenance

57,699

54,417

3,282

Palo Verde operations and maintenance

22,016

20,489

1,527

Taxes other than income taxes

19,253

17,964

1,289

Other income

5,747

1,389

4,358

Earnings Before Interest, Taxes, Depreciation and Amortization

116,174

103,570

12,604

(b)

Depreciation and amortization

22,380

20,685

1,695

Interest on long-term debt

16,465

14,617

1,848

AFUDC and capitalized interest

4,435

7,308

(2,873

)

Other interest expense

424

438

(14

)

Income Before Income Taxes

81,340

75,138

6,202

Income tax expense

24,600

22,662

1,938

Net Income

$

56,740

$

52,476

$

4,264

Basic Earnings per Share

$

1.40

$

1.30

$

0.10

Diluted Earnings per Share

$

1.40

$

1.30

$

0.10

Dividends declared per share of common stock

$

0.295

$

0.280

$

0.015

Weighted average number of shares outstanding

40,289

40,214

75

Weighted average number of shares and dilutive potential shares
outstanding

Earnings before interest, taxes, depreciation and amortization
("EBITDA") is a non-generally accepted accounting principles
("GAAP") financial measure and is not a substitute for net income or
other measures of financial performance in accordance with GAAP.

El Paso Electric Company

Statements of Operations

Nine Months Ended September 30, 2015 and 2014

(In thousands except for per share data)

(Unaudited)

2015

2014

Variance

Operating revenues, net of energy expenses:

Base revenues

$

451,648

$

438,613

$

13,035

(a)

Deregulated Palo Verde Unit 3 revenues

7,541

11,903

(4,362

)

Palo Verde performance rewards, net

—

2,220

(2,220

)

Other

23,001

22,331

670

Operating Revenues Net of Energy Expenses

482,190

475,067

7,123

Other operating expenses:

Other operations and maintenance

160,685

153,515

7,170

Palo Verde operations and maintenance

67,702

68,041

(339

)

Taxes other than income taxes

48,844

48,883

(39

)

Other income

11,324

8,642

2,682

Earnings Before Interest, Taxes, Depreciation and Amortization

216,283

213,270

3,013

(b)

Depreciation and amortization

67,080

62,336

4,744

Interest on long-term debt

49,443

43,803

5,640

AFUDC and capitalized interest

17,540

19,853

(2,313

)

Other interest expense

941

899

42

Income Before Income Taxes

116,359

126,085

(9,726

)

Income tax expense

35,089

38,898

(3,809

)

Net Income

$

81,270

$

87,187

$

(5,917

)

Basic Earnings per Share

$

2.01

$

2.16

$

(0.15

)

Diluted Earnings per Share

$

2.01

$

2.16

$

(0.15

)

Dividends declared per share of common stock

$

0.870

$

0.825

$

0.045

Weighted average number of shares outstanding

40,268

40,181

87

Weighted average number of shares and dilutive potential shares
outstanding

Earnings before interest, taxes, depreciation and amortization
("EBITDA") is a non-generally accepted accounting principles
("GAAP") financial measure and is not a substitute for net income or
other measures of financial performance in accordance with GAAP.

El Paso Electric Company

Cash Flow Summary

Nine Months Ended September 30, 2015 and 2014

(In thousands and Unaudited)

2015

2014

Cash flows from operating activities:

Net income

$

81,270

$

87,187

Adjustments to reconcile net income to net cash provided by
operations:

Depreciation and amortization of electric plant in service

67,080

62,336

Amortization of nuclear fuel

32,864

33,942

Deferred income taxes, net

32,090

35,990

Net gains on sale of decommissioning trust funds

(7,886

)

(3,791

)

Other

4,655

2,111

Change in:

Accounts receivable

(33,156

)

(47,331

)

Net over-collection (under-collection) of fuel revenues

10,934

(1,233

)

Accounts payable

(14,397

)

3,557

Other

2,976

1,869

Net cash provided by operating activities

176,430

174,637

Cash flows from investing activities:

Cash additions to utility property, plant and equipment

(211,516

)

(189,273

)

Cash additions to nuclear fuel

(30,483

)

(28,772

)

Decommissioning trust funds

(6,240

)

(6,988

)

Other

(9,106

)

(2,805

)

Net cash used for investing activities

(257,345

)

(227,838

)

Cash flows from financing activities:

Dividends paid

(35,138

)

(33,261

)

Borrowings under the revolving credit facility, net

104,161

75,176

Payment on maturing RGRT senior notes

(15,000

)

—

Other

(1,039

)

(896

)

Net cash provided by financing activities

52,984

41,019

Net decrease in cash and cash equivalents

(27,931

)

(12,182

)

Cash and cash equivalents at beginning of period

40,504

25,592

Cash and cash equivalents at end of period

$

12,573

$

13,410

El Paso Electric Company

Quarter Ended September 30, 2015 and 2014

Sales and Revenues Statistics

Increase (Decrease)

2015

2014

Amount

Percentage

kWh sales (in thousands):

Retail:

Residential

1,000,997

894,525

106,472

11.9

%

Commercial and industrial, small

718,897

694,928

23,969

3.4

%

Commercial and industrial, large

270,240

276,226

(5,986

)

(2.2

)%

Public authorities

459,212

424,445

34,767

8.2

%

Total retail sales

2,449,346

2,290,124

159,222

7.0

%

Wholesale:

Sales for resale

22,126

19,211

2,915

15.2

%

Off-system sales

711,934

740,153

(28,219

)

(3.8

)%

Total wholesale sales

734,060

759,364

(25,304

)

(3.3

)%

Total kWh sales

3,183,406

3,049,488

133,918

4.4

%

Operating revenues (in thousands):

Non-fuel base revenues:

Retail:

Residential

$

90,803

$

81,296

$

9,507

11.7

%

Commercial and industrial, small

62,966

61,143

1,823

3.0

%

Commercial and industrial, large

13,327

11,929

1,398

11.7

%

Public authorities

29,588

28,266

1,322

4.7

%

Total retail non-fuel base revenues

196,684

182,634

14,050

7.7

%

Wholesale:

Sales for resale

936

771

165

21.4

%

Total non-fuel base revenues

197,620

183,405

14,215

7.8

%

Fuel revenues:

Recovered from customers during the period

39,614

54,405

(14,791

)

(27.2

)%

Over collection of fuel (a)

(101

)

(12,136

)

12,035

99.2

%

New Mexico fuel in base rates

23,215

22,416

799

3.6

%

Total fuel revenues (b)

62,728

64,685

(1,957

)

(3.0

)%

Off-system sales:

Fuel cost

17,920

22,007

(4,087

)

(18.6

)%

Shared margins

2,446

5,126

(2,680

)

(52.3

)%

Retained margins

435

605

(170

)

(28.1

)%

Total off-system sales

20,801

27,738

(6,937

)

(25.0

)%

Other (c)

8,564

7,817

747

9.6

%

Total operating revenues

$

289,713

$

283,645

$

6,068

2.1

%

(a)

2014 includes a Department of Energy refund related to spent fuel
storage of $8.3 million.

(b)

Includes deregulated Palo Verde Unit 3 revenues for the New Mexico
jurisdiction of $2.5 million and $3.9 million, respectively.

(c)

Represents revenues with no related kWh sales.

El Paso Electric Company

Quarter Ended September 30, 2015 and 2014

Other Statistical Data

Increase (Decrease)

2015

2014

Amount

Percentage

Average number of retail customers: (a)

Residential

357,913

353,075

4,838

1.4

%

Commercial and industrial, small

40,368

39,730

638

1.6

%

Commercial and industrial, large

49

49

—

—

Public authorities

5,240

5,112

128

2.5

%

Total

403,570

397,966

5,604

1.4

%

Number of retail customers (end of
period): (a)

Residential

358,421

353,640

4,781

1.4

%

Commercial and industrial, small

40,385

39,813

572

1.4

%

Commercial and industrial, large

49

49

—

—

Public authorities

5,232

5,126

106

2.1

%

Total

404,087

398,628

5,459

1.4

%

Weather statistics: (b)

10-Yr Average

Heating degree days

—

—

1

Cooling degree days

1,732

1,415

1,495

Generation and purchased power (kWh, in
thousands):

Increase (Decrease)

2015

2014

Amount

Percentage

Palo Verde

1,374,274

1,370,091

4,183

0.3

%

Four Corners

162,771

164,665

(1,894

)

(1.2

)%

Gas plants

1,351,775

1,289,419

62,356

4.8

%

Total generation

2,888,820

2,824,175

64,645

2.3

%

Purchased power:

Photovoltaic

77,104

65,854

11,250

17.1

%

Other

421,571

320,869

100,702

31.4

%

Total purchased power

498,675

386,723

111,952

28.9

%

Total available energy

3,387,495

3,210,898

176,597

5.5

%

Line losses and Company use

204,089

161,410

42,679

26.4

%

Total kWh sold

3,183,406

3,049,488

133,918

4.4

%

Palo Verde capacity factor

100.1

%

99.8

%

0.3

%

(a)

The number of retail customers is based on the number of service
locations.

(b)

A degree day is recorded for each degree that the average outdoor
temperature varies from a standard of 65 degrees Fahrenheit.

El Paso Electric Company

Nine Months Ended September 30, 2015 and 2014

Sales and Revenues Statistics

Increase (Decrease)

2015

2014

Amount

Percentage

kWh sales (in thousands):

Retail:

Residential

2,203,590

2,087,558

116,032

5.6

%

Commercial and industrial, small

1,835,931

1,809,477

26,454

1.5

%

Commercial and industrial, large

802,182

794,891

7,291

0.9

%

Public authorities

1,222,187

1,202,403

19,784

1.6

%

Total retail sales

6,063,890

5,894,329

169,561

2.9

%

Wholesale:

Sales for resale

54,575

51,931

2,644

5.1

%

Off-system sales

1,913,215

2,003,020

(89,805

)

(4.5

)%

Total wholesale sales

1,967,790

2,054,951

(87,161

)

(4.2

)%

Total kWh sales

8,031,680

7,949,280

82,400

1.0

%

Operating revenues (in thousands):

Non-fuel base revenues:

Retail:

Residential

$

197,165

$

186,718

$

10,447

5.6

%

Commercial and industrial, small

148,800

146,939

1,861

1.3

%

Commercial and industrial, large

31,455

30,220

1,235

4.1

%

Public authorities

72,163

72,837

(674

)

(0.9

)%

Total retail non-fuel base revenues

449,583

436,714

12,869

2.9

%

Wholesale:

Sales for resale

2,065

1,899

166

8.7

%

Total non-fuel base revenues

451,648

438,613

13,035

3.0

%

Fuel revenues:

Recovered from customers during the period

102,985

126,107

(23,122

)

(18.3

)%

Under (over) collection of fuel (a)

(10,933

)

1,223

(12,156

)

—

New Mexico fuel in base rates

55,765

55,643

122

0.2

%

Total fuel revenues (b)

147,817

182,973

(35,156

)

(19.2

)%

Off-system sales:

Fuel cost

41,204

61,470

(20,266

)

(33.0

)%

Shared margins

8,698

14,515

(5,817

)

(40.1

)%

Retained margins

955

1,729

(774

)

(44.8

)%

Total off-system sales

50,857

77,714

(26,857

)

(34.6

)%

Other (c)

22,645

21,662

983

4.5

%

Total operating revenues

$

672,967

$

720,962

$

(47,995

)

(6.7

)%

(a)

Includes a Department of Energy refund related to spent fuel
storage of $5.8 million and $8.3 million, respectively. 2014
includes $2.2 million related to Palo Verde performance rewards,
net.

(b)

Includes deregulated Palo Verde Unit 3 revenues for the New Mexico
jurisdiction of $7.5 million and $11.9 million, respectively.

(c)

Represents revenues with no related kWh sales.

El Paso Electric Company

Nine Months Ended September 30, 2015 and 2014

Other Statistical Data

Increase (Decrease)

2015

2014

Amount

Percentage

Average number of retail customers: (a)

Residential

356,388

351,813

4,575

1.3

%

Commercial and industrial, small

40,207

39,477

730

1.8

%

Commercial and industrial, large

49

49

—

—

Public authorities

5,243

5,090

153

3.0

%

Total

401,887

396,429

5,458

1.4

%

Number of retail customers (end of
period): (a)

Residential

358,421

353,640

4,781

1.4

%

Commercial and industrial, small

40,385

39,813

572

1.4

%

Commercial and industrial, large

49

49

—

—

Public authorities

5,232

5,126

106

2.1

%

Total

404,087

398,628

5,459

1.4

%

Weather statistics: (b)

10-Yr Average

Heating degree days

1,206

1,042

1,247

Cooling degree days

2,695

2,535

2,574

Generation and purchased power (kWh, in
thousands):

Increase (Decrease)

2015

2014

Amount

Percentage

Palo Verde

3,940,370

3,926,066

14,304

0.4

%

Four Corners

473,416

436,889

36,527

8.4

%

Gas plants

3,046,330

2,884,707

161,623

5.6

%

Total generation

7,460,116

7,247,662

212,454

2.9

%

Purchased power:

Photovoltaic

223,818

174,038

49,780

28.6

%

Other

827,478

974,317

(146,839

)

(15.1

)%

Total purchased power

1,051,296

1,148,355

(97,059

)

(8.5

)%

Total available energy

8,511,412

8,396,017

115,395

1.4

%

Line losses and Company use

479,732

446,737

32,995

7.4

%

Total kWh sold

8,031,680

7,949,280

82,400

1.0

%

Palo Verde capacity factor

96.7

%

96.4

%

0.3

%

(a)

The number of retail customers presented is based on the number of
service locations.

(b)

A degree day is recorded for each degree that the average outdoor
temperature varies from a standard of 65 degrees Fahrenheit.

El Paso Electric Company

Financial Statistics

At September 30, 2015 and 2014

(In thousands, except number of shares, book value per share, and
ratios)

Balance Sheet

2015

2014

Cash and cash equivalents

$

12,573

$

13,410

Common stock equity

$

1,020,795

$

1,015,857

Long-term debt

1,134,258

984,688

Total capitalization

$

2,155,053

$

2,000,545

Current maturities of long-term debt

$

—

$

15,000

Short-term borrowings under the revolving credit facility

$

118,693

$

89,528

Number of shares - end of period

40,426,668

40,357,982

Book value per common share

$

25.25

$

25.17

Common equity ratio (a)

44.9

%

48.3

%

Debt ratio

55.1

%

51.7

%

(a)

The capitalization component includes common stock equity, long-term
debt and the current maturities of long-term debt, and short-term
borrowings under the RCF.

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